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Step-by-Step guide to avail no claim bonus for two-wheeler insurance

Indians love to ride their motorcycles. That is, perhaps, because riding a motorcycle is fun, it’s economical and it’s the most efficient way to navigate the crowded Indian roads. The popularity of two-wheelers as a preferred mode of transport reflects in the fact that there are almost 20 crore registered two-wheelers in the country as opposed to around 3 crore cars, as per the latest available data[1]. According to the Ministry of Road Transport and Highways, two-wheelers constitute 73.9 per cent of total registered vehicles. On the downside, at 36.5 per cent, they also account for the highest share in total number of road accident deaths[2]. So it is crucial to have a comprehensive and up-to-date two-wheeler insurance policy in order to have a safe and worry-free ride on your beloved motorcycle.

In today’s time, buying and renewing an insurance policy has become easier than ever before. With a few clicks of a button, you can now purchase or renew your bike insurance policy. However, many people are unaware that in a time when things become expensive with every passing year, the premium of their motor insurance policy can actually come down each year. How is that possible, you ask? Enter ‘No Claim Bonus’.

What exactly is No Claim Bonus?

No Claim Bonus, as its name suggests, is a discount on insurance premiums that vehicle owners stand to get if they ride carefully, without having to make an insurance claim for the duration of the policy year, or more. The more you ride without an accident and without an insurance claim, the higher the no claim bonus.

There are also times when the policyholder may decide to bear expenses of the minor repairs of the bike by herself instead of filing a claim with the insurance company. Even in such cases, the policyholder can avail the No Claim Bonus during the renewal of the policy.

A real world example

Ajit and Akash are two friends who bought the same model of a Bajaj motorcycle on the same day last year. They both paid Rs 1 lakh each for the bike, and their insurance premium is Rs 3,000 each for the first year. In the second year, the premiums come up for renewal. Ajit has driven without an accident for the last one year, and his new premium is Rs 2,240 thanks to the No Claim Bonus.

On the other hand, Akash, who got into a minor accident sometime during the year, and claimed insurance to fix his motorcycle, is not eligible to claim No Claim Bonus. Akash effectively has to pay around Rs 2,800 for the same insurance policy renewal. This is exactly how No Claim Bonus works, and helps you save a lot of money if you drive carefully. Online tools such as two wheeler insurance premium calculator the can help in evaluating your premiums in a simple manner. The premium and NCB mentioned will differ based on the terms and conditions of the policy.

How much can you save?

If you don’t make a claim for one year, you get a 20 per cent bonus discount on your next insurance premium. You get a 25 per cent bonus for two years of no claims, 30 per cent for three years, 45 per cent for four years and finally, a whopping 50 per cent discount on premium for five years of no claims.

Steps to avail ‘No Claim Bonus’

Now that you know what ‘No Claim Bonus’ is, here are a few simple steps that will help you get rewarded for safe riding. The prerequisite here is that you haven’t made an insurance claim for the past one year, or more.

Step 1: Go to the Bajaj Allianz website for your two wheeler insurance renewal

Step 2: Enter your personal details like name and phone number.

Step 3: Enter the details of your previous insurance policy on which you are availing the No Claim Bonus.

(Note: Only comprehensive insurance is eligible for no claim bonus. No claim bonus is not applicable on standalone third-party insurance)

Step 4: Enter your vehicle details. Your premium will be shown on the screen after adjusting the No Claim Bonus.

Step 5: Check details, make the payment and you are done.

Steps to transfer ‘No Claim Bonus’

The good news is that the No Claim Bonus is not vehicle specific but rider specific. Hence, even if you sell your two-wheeler after using it for, say, five years without making any insurance claim, you can get the maximum discount (bonus) of 50 per cent on insurance premium of your new motorcycle or scooter. With Bajaj Allianz General Insurance, you can do it in a few simple steps as shown here (the required formalities will differ based on the terms and conditions):

Step 1: Make sure you provide a copy of the ownership transfer certificate of your old vehicle along with the old registration certificate to Bajaj Allianz General Insurance.

Step 2: If your previous vehicle was insured with another insurer, you must get the No Claim Bonus Certificate from them and provide it to Bajaj Allianz. One thing to remember is that the No Claim Bonus Certificate is valid for a period of three years, and it is only during this time the bonus can be transferred to the new vehicle.

Step 3: Make a written request to transfer the No Claim Bonus to the new policy. And if everything is in order, you would be able to receive the discount on the new policy.

Five commonly asked questions about No Claim Bonus

  1. Can I transfer NCB to my friend/family member?

No, you cannot. NCB is only applicable for the policyholder.

  1. Does ‘No Claim Bonus’ apply to third party insurance policies?

No, it does not. NCB (discount) is applicable only on comprehensive insurance policies.

A comprehensive insurance policy is generally one that covers you(the rider) against the injuries during an accident, and your two wheeler from damage caused due to an accident/calamity, and theft.

  1. What happens when I make a claim after 3 years of no claims?

Your NCB is reset to zero. Assume that you have not made a claim for the first two years, your NCB will be 25 per cent, and you would have received a discount on premium paid while renewing your vehicle’s policy for the third year.

Now, when you make a claim in the third year, your NCB will be reset to zero, and you will not get a NCB discount when you renew the policy for the fourth year. If you don’t make any claim during the fourth year, your NCB discount will be 20% when you renew the policy during the fifth year.

  1. What is the maximum NCB I can avail?

50 per cent. For instance, if you don’t make a claim for five full years, you stand to get a 50 per cent discount on premium when you buy/renew insurance for the sixth year. Now, if you don’t make any claim during the 6th year, you get a 50 per cent NCB discount for the 7th year, and the same 50 per cent discount while renewing for subsequent years if you don’t make any claims.

  1. Can I transfer NCB when I shift insurance providers?

Yes, absolutely. You can transfer NCB whenever you shift insurance providers. The only clause to gain NCB discount is that you should not have made any claims in the past one year.

It is crucial that you note the importance of insurance. It is also important to know how to get the best benefits from the critical services you subscribe to, like a two-wheeler insurance. Availing the insurance from Bajaj Allianz General Insurance can be simple and easy to claim through the online facilities.

Source:

[1] http://mospi.nic.in/statistical-year-book-india/2018/189

[2] https://morth.gov.in/sites/default/files/Ministry%20Annual%20Report_2019-20.pdf

Image Credit: Bajaj Allianz General Insurance